BILL NUMBER: SB 586	CHAPTERED  10/10/99

	CHAPTER   680
	FILED WITH SECRETARY OF STATE   OCTOBER 10, 1999
	APPROVED BY GOVERNOR   OCTOBER 6, 1999
	PASSED THE SENATE   SEPTEMBER 8, 1999
	PASSED THE ASSEMBLY   SEPTEMBER 3, 1999
	AMENDED IN ASSEMBLY   SEPTEMBER 2, 1999
	AMENDED IN ASSEMBLY   AUGUST 16, 1999
	AMENDED IN SENATE   MAY 28, 1999

INTRODUCED BY   Senator Costa and Assembly Member Alquist
   (Coauthor:  Senator Johnston)
   (Coauthors:  Assembly Members Reyes, Scott, and Torlakson)

                        FEBRUARY 23, 1999

   An act to amend Section 2550 of, to amend and repeal Section 2551
of, and to add Section 2567 to, the Education Code, relating to
education finance.



	LEGISLATIVE COUNSEL'S DIGEST


   SB 586, Costa.  School finance:  equalization adjustments.
   Existing law requires the Superintendent of Public Instruction to
make certain computations to determine the amount to be allocated for
direct services and other purposes provided by county
superintendents of schools and to determine each county
superintendent's revenue limit for county superintendent
responsibilities and direct services.  Existing law sets forth a
method for equalizing the revenue limits for county offices of
education for the 1995-96 fiscal year.
   This bill would repeal, as of  January 1, 2000, the existing
formulas for determining each county superintendent's revenue limit
for county superintendent responsibilities and services.  The bill
would require the Superintendent of Public Instruction to apportion
equalization funding for the 1999-2000 fiscal year to certain county
offices of education in prescribed amounts.  The bill would make a
conforming change to existing law regarding the computations to be
made by the Superintendent of Public Instruction to determine the
amounts to be allocated for direct and other services provided by
county superintendents of schools.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  (a) The Legislature finds and declares all of the
following:
   (1) County offices of education provide critical services to
school districts, including education technology programs, reading
initiative programs, school safety, staff development, and district
accounting and administrative programs.
   (2) The Governor's 1999 Special Session on Education produced four
important major education reforms benefiting California's pupils and
teachers, which will require assistance from county offices of
education for their effective implementation.
   (3) All school districts should receive appropriate financial and
administrative support from county offices of education in the
implementation of these fiscal and academic accountability reform
initiatives.
   (4) Every school district, regardless of size or location, should
receive an appropriate and equitable level of services from its
county office of education.
   (5) As a result of past inequities in funding for county offices
of education, the general purpose revenues of individual county
offices of education vary as much as 300 percent within similar size
counties, thereby limiting the ability of the lowest funded counties
to provide services to their respective districts.
   (6) School districts have received almost six hundred million
dollars ($600,000,000) in equalization funding in recent years, while
county offices have not received any equalization funding.
   (b) It is the intent of the Legislature by amending Sections 2550
and 2551 of, and adding Section 2567 to, the Education Code in the
act adding this section, to assist those counties that are below the
statewide average in general purpose funding, so that all school
districts receive appropriate assistance from their county offices of
education in the implementation of the Governor's 1999 reform
measures, including school accountability, the high school exit
examination, peer assistance and review, reading development and
early intervention, schoolsite safety, academic assistance, and
fiscal accountability and oversight measures established pursuant to
Chapter 1213 of the Statutes of 1991 and Chapter 650 of the Statutes
of 1994.
  SEC. 2.  Section 2550 of the Education Code is amended to read:
   2550.  For each fiscal year, the Superintendent of Public
Instruction shall make the following computations to determine the
amount to be allocated for direct services and other purposes
provided by county superintendents of schools:
   (a) For programs operated pursuant to subdivision (a) of Section
14054, the Superintendent of Public Instruction shall:
   (1) Determine the allowances that county superintendents received
per unit of average daily attendance in the prior fiscal year.  The
Superintendent of Public Instruction shall increase each amount by a
percentage equal to the inflation allowance calculated for the
current fiscal year pursuant to Section 2557.
   (2) Multiply each amount determined in paragraph (1) by the actual
number of units of average daily attendance in the prior fiscal year
for programs maintained by each county superintendent.  For purposes
of this paragraph, the number of units of average daily attendance
shall include only units generated by elementary districts with less
than 901 units of average daily attendance, high school districts
with less than 301 units of average daily attendance, and unified
school districts with less than 1,501 units of average daily
attendance within each county superintendent's jurisdiction.
   (b) For programs operated pursuant to subdivision (b) of Section
14054, the Superintendent of Public Instruction shall:
   (1) (A) For the 1999-2000 fiscal year, determine the rate per unit
of average daily attendance calculated for each county office of
education pursuant to subdivision (b) of Section 2567 and increase
each rate by a percentage equal to the inflation allowance calculated
in Section 2557.
   (B) For the 2000-01 fiscal year and each fiscal year thereafter,
determine the allowances that county superintendents received per
unit of average daily attendance in the prior fiscal year.  The
Superintendent of Public Instruction shall increase each amount by a
percentage equal to the inflation allowance calculated for the
current fiscal year pursuant to Section 2557.
   (2) Multiply each amount determined in paragraph (1) by the units
of average daily attendance in the current fiscal year for programs
for kindergarten and grades 1 to 12, inclusive, maintained by each
county superintendent.  For the purposes of this paragraph, average
daily attendance shall include only the total units of average daily
attendance credited to all elementary, high school, and unified
school districts within each county superintendent's jurisdiction and
to the county superintendent.
  SEC. 3.  Section 2551 of the Education Code is amended to read:
   2551.  The Superintendent of Public Instruction shall perform the
computations prescribed in this section to determine each county
superintendent's revenue limit for county superintendent
responsibilities and district services:
   (a) For the 1981-82 fiscal year, the superintendent shall add to
the revenue limit amount computed pursuant to subdivision (a) of
Section 2551 for the 1980-81 fiscal year, the revenue limit amount
computed pursuant to Section 2552 for the 1980-81 fiscal year reduced
by 55.9 percent.  This adjusted revenue limit shall then be
increased by the inflation allowance calculated in subdivision (a) of
Section 2557.
   (b) For the 1981-82 fiscal year and for each fiscal year
thereafter, the Superintendent of Public Instruction shall increase
the amount calculated in subdivision (a) by the amounts computed
according to Sections 2507.5 and 2510.
   (c) The total amounts for each program calculated pursuant to
subdivision (a) may be used for any of the services or programs
specified in this section, or Section 2552 as it read prior to the
enactment of this act.
   (d) This section shall become inoperative on July 1, 1999, and as
of January 1, 2000, is repealed, unless a later enacted statute, that
becomes operative on or before January 1, 2000, deletes or extends
the dates on which it becomes inoperative and is repealed.
  SEC. 4.  Section 2567 is added to the Education Code, to read:
   2567.  (a) To compute, pursuant to subdivision (b), a rate per
unit of average daily attendance for county offices of education for
the 1999-2000 fiscal year, the Superintendent of Public Instruction
shall use the amounts listed below, which amounts shall be used for
the purposes of school accountability, pursuant to Chapter 3 of the
Statutes of the 1999-2000 First Extraordinary Session; the high
school exit examination, pursuant to Chapter 1 of the Statutes of the
1999-2000 First Extraordinary Session; peer assistance and review,
pursuant to Chapter 4 of the Statutes of the 1999-2000 First
Extraordinary Session; reading development and early intervention,
pursuant to Chapter 2 of the Statutes of the 1999-2000 First
Extraordinary Session; schoolsite safety, pursuant to Chapter 51 of
the Statutes of 1999; education technology, pursuant to Chapter 650
of the Statutes of 1994; and fiscal accountability and oversight,
pursuant to Chapter 1213 of the Statutes of 1991 and Chapter 650 of
the Statutes of 1994:




          Alameda ..........................     $163,978
          Butte ............................       30,655
          Calaveras ........................       28,351
          Colusa ...........................       27,915
          Contra Costa .....................      408,814
          El Dorado ........................       33,672
          Fresno ...........................      631,164
          Glenn ............................        9,823
          Humboldt .........................       36,030
          Imperial .........................      153,282
          Kern .............................       33,367
          Kings ............................       76,689
          Lassen ...........................       13,869
          Los Angeles ......................    1,701,296
          Madera ...........................       71,248
          Merced ...........................       75,750
          Nevada ...........................       39,754
          Orange ...........................      408,142
          Placer ...........................          693
          Sacramento .......................      573,462
          San Benito .......................       32,298
          San Bernardino ...................      586,611
          San Joaquin ......................      329,422
          Shasta ...........................       53,678
          Solano ...........................      271,764
          Stanislaus .......................      316,300
          Sutter ...........................       76,383
          Tehama ...........................       33,828
          Trinity ..........................        4,370
          Tulare ...........................      402,307
          Tuolumne .........................       23,559
          Ventura ..........................       85,842
          Yolo .............................       36,230
          Yuba .............................       34,624
                                               __________
                                               $6,805,170

   (b) For purposes of subparagraph (A) of paragraph (1) of
subdivision (b) of Section 2550, the Superintendent of Public
Instruction shall compute a rate per unit of average daily attendance
for each county office of education as follows:
   (1) For each county office of education, the sum of the following
amounts:
   (A) The amount, if any, listed for the county office of education
in subdivision (a).
   (B) The amounts received by the county office of education in the
1998-99 fiscal year for the apportionments set forth in paragraph (1)
of subdivision (c) of Section 2561.
   (2) Divide the amount computed pursuant to paragraph (1) by the
1998-99 countywide average daily attendance.
